Dr. Shabir Ally discusses the often misunderstood Quranic verse 2:279, which addresses the issue of usury. Dr. Shabir explains that this verse, when combined with the previous verse 2:278, warns believers to give up usurious interest, or face a declaration of war from God and His Messenger. He clarifies that this warning is directed at those who oppress the poor through usury, a practice that involved charging high interest rates and often led to the impoverished becoming enslaved to their lenders. Dr. Shabir distinguishes between historical usurious practices and modern business loans, noting that the former was exploitative. He explains that while the Quran specifically condemns the oppressors who take usurious interest, the Hadith expands this prohibition to anyone involved in the transaction, including those who pay, witness, or document the interest. He says the Quran defends the oppressed by warning the oppressors, and it is a misunderstanding to equate the oppressed who pay interest with the oppressors who charge it. This conflation has caused unnecessary fear among Muslims who, for instance, take out mortgages to buy homes. The verse in the Quran, Dr. Shabir emphasizes, specifically targets the oppressors, not the oppressed. Thus, he concludes that this Quranic verse has been widely misunderstood and misapplied.
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